1st LD Writethru: Gold soars after downbeat U.S. job report

Gold futures on the COMEX division of the New York Mercantile Exchange rallied strongly on Friday, snapping its five-session losing streak, as a disappointing U.S. job report weighed on the dollar.

The most active gold contract for December delivery rose 22.9 U.S. dollars, or 2.06 percent, to settle at 1,136.6 dollars per ounce.

The U.S. Labor Department reported Friday the U.S. economy added 142,000 jobs in September, well below the market estimate of 200,000. The government also sharply lowered employment gains for August.

The data saw investors scale back expectations for a rate hike by the U.S. Federal Reserve, which undercut the dollar, lifting the appeal of the precious metal.

Analysts pointed that investors should forget about a 2015 rate hike as the U.S. labor market is shrinking with the labor participation falling to a 38-year low.

The U.S. central bank has been keenly watching employment and inflation as two key gauges to help influence its plans for kicking off the first interest-rate hike in nearly a decade.

Generally, increasing interest rates would boost the U.S. dollar higher. Analysts note gold and the U.S. dollar typically move in opposite directions, which means a weaker U.S. dollar can be a positive for commodities priced in dollars, while a stronger dollar can weigh on commodities.

Meanwhile, the weak U.S. data sparked worries that a global economic slowdown is dragging on the nation's growth, which pushed investors to safe-haven metals. Other date on Friday showed U.S. factory orders fell in August.

Among other metals, silver for December delivery Friday added 75.2 cents, or 5.18 percent, to close at 15.263 dollars per ounce, while platinum for January delivery gained 4.3 dollars, or 0.48 percent, to close at 909.5 dollars per ounce. Enditem